Portfolio Variance Compute the portfolio return for each state: Rp=WR1+W2R2+.…+WmRm Compute the expected portfolio return using the same formula as for an individual asset Compute the portfolio variance and standard deviation using the same formulas as for an individual asset 1212 Portfolio Variance n Compute the portfolio return for each state: RP = w1R1 + w2R2 + … + wmRm n Compute the expected portfolio return using the same formula as for an individual asset n Compute the portfolio variance and standard deviation using the same formulas as for an individual asset